Exxon Mobil has scored a huge win in the race to drill for Arctic crude oil. The company on Tuesday announced that they have signed a deal with Russian owned oil company Rosneft which gives them the right to explore for oil in the Kara Sea region controlled by Moscow.
Sea ice in that particular region has been receding making it one of the most sought after oil fields in the world.
Under the agreement Rosneft will gain access to some of Exxon Mobil’s US operations in the Gulf of Mexico and Texas, while Exxon will use their deep sea drilling technology to find oil, technology that Rosneft does not possess.
Recently Rosneft and BP attempted to sign a similar agreement however the company’s could not agree to finalized terms and that deal ended up falling apart.
The deal is seen as a big win for Exxon since they will be the first potential provider to unlock crude oil in the region, however it could come with a huge $500 billion investment, an amount of money that Russia’s Vladimir Putin has called “scary.”
In the meantime environmental groups are railing against off shore drilling in the Arctic region where ice and deep waters could lead to oil spills that in turn could potentially destroy the eco-system in the area.
Where do you stand on the Exxon Mobil drilling announcement. Should the Arctic be left alone given the dangers of drilling in the area or should they be allowed to exploit as many oil fields as possible?